Bill Huffman
Director - Government Relations

The Friday Report

June 26, 2009

The U.S. House of Representatives today approved H.R. 2454, The Climate Change and Energy Bill on a 219-212 vote.  Eight Republican’s joined the Democrats in support of this monumental climate change legislation.  Forty-nine Democrats voted “no”. Without the eight Republican votes, this bill would have failed today on the House floor.

The legislation now goes to the Senate where its future remains uncertain.

Key to the passage of this legislation was a deal brokered by House Agriculture Committee Chairman Colin Peterson that reportedly includes a strong agriculture offset program to be run the U.S. Department of Agriculture (not Federal EPA) that supposedly will allow farmers, ranchers, and forestland owners to participate fully in a market-based carbon offset program. We also understand the deal brokered by Chairman Peterson addresses concerns of agriculture about international indirect land use provisions that would have unfairly restricted U.S. biofuels producers and exempts agriculture and forestry from the definition of a capped sector.

In the coming days we will have much more information about this legislation and how it will affect production agriculture. We’ll also begin to get the thoughts of key members of the U.S. Senate who will soon be considering the bill.